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Last updated: Aug 16, 2023
Planet Finance is a decentralized financial protocol launched in May 2021. The platform consists of three separate applications called Planets. Each Planet features different products, such as decentralized financial services, lending protocols, or the NFT marketplace.
The first application of the Planet protocol is called Blue Planet. It offers different tools such as portfolios, vaults, pools, and an exchange. Vaults allow users to deposit assets and earn rewards and income in the form of interest paid by borrowers. There are several types of vaults, varying in terms, incentives, and fees. Planet Finance pools serve to provide liquidity to decentralized exchanges (including Planet's own exchange). Depositing two assets in a pool, platform users receive an LP token. Pools are divided into two types — Planet's AMM pools and third-party platform liquidity pools.
The second application of the Planet protocol is called Green Planet. This product is essentially a lending protocol where all loans taken by borrowers are over collateralized, ensuring that there's always capital in the protocol to protect the lenders’ funds.
The last app that has been announced but not yet launched is Pink Planet. It is a trading platform for creating, buying, and selling NFTs.
To start using the app, you need one of the supported Planet Finance wallets: MetaMask, Binance Chain Wallet, or Wallet Connect. Once connected to the application, you find yourself on the Base tab, which is a portfolio that displays all the useful information about your assets and the general TVL protocol. The tab also provides information about the project's native tokens (total supply, capitalization, and inflation).
To add assets to the vaults, go to the "Vaults" tab and select one or more vaults. Profits, as well as rewards for adding assets, are in the GAMMA native token, which can then be claimed by clicking on a separate button on the same tab. Here you will also find two staking vaults for the native tokens GAMMA and AQUA. GAMMA can be earned first by providing liquidity for loans in the Green Planet app, and AQUA can be purchased on the Planet platform under the Swap tab.
The next tab "Pools" contains all the available pools for liquidity providers. Select a token you wish to transform into the pool's LP tokens and click the "Transform" button. You will create an LP token, which can be added to the pool for a 0.13% reward (a portion of the swap fees), as well as native GAMMA tokens. Rewards in GAMMA can be claimed through the Collect button of the pool. Withdrawal of tokens is done in reverse order by clicking Withdraw and then Transform. The withdrawal takes 21 days with a 1% fee. At the same time, there is an option of instant withdrawal with a 5% fee.
If you need to exchange tokens or purchase AQUA, go to the "Swap" tab. All the traded assets are BEP20 tokens on BNB Chain. Planet's protocol uses an automated market maker (AMM) model where users trade against a liquidity pool. All swaps on the Planet Finance app incur a 0.25% fee, 0.13% of which is allocated to liquidity providers, and 0.12% to the protocol.
The last tab is "Lending", where users can both provide assets as collateral for their own loans, as well as provide liquidity for other borrowers. Whenever you deposit assets in the Planet vaults, you receive gTokens, which function as a receipt for withdrawing assets in the future. For example, if you deposit UST, you will receive gUST. Over time, the value of a gToken should increase, as its value comes from the ratio between outstanding gTokens vs. the total amount of UST in the contract.
The total supply of GAMMA tokens is 100 million. GAMMA earned and purchased by the protocol flow to the GAMMA reserve, which then distributes tokens to the protocol users. The token is used to incentivize liquidity providers, as well as suppliers and borrowers.
GAMMA staking allows for higher yields, as well as lower borrowing and lending fees. The Green Planet offers three discount levels depending on the “stake ratio” — the USD value of GAMMA staked as a percentage relative to the total amount of assets supplied as collateral. Level 1 (1-5%) — gives 5% discount on lending & borrowing; Level 2 (5-10%) — 20% discount; Level 3 (>10%) — 50% discount.
Planet Finance also has a management token called AQUA, which gives voting power on decisions regarding the future of the project and the size of interest rates. The total supply of AQUA tokens equals 100,000. All the tokens have been distributed to users of the platform and there is no new mint planned for the future.
The Planet Finance team is anonymous.
Planet Finance announced a partnership with a stablecoin protocol FRAX in January 2022 with the launching of the FRAX lending market.
The future of the protocol is in the hands of the community, which can vote on UI/UX updates, brand updates, and adding new features.
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